By Hillary Keingana
BUSHENYI: The battle between a group of shareholders of Igara Growers Tea Factory and the Factory’s Board of Directors has taken a new twist.
The High Court in Bushenyi has dismissed a petition filed by disgruntled shareholders on grounds of wrong legal procedures. A group of the shareholders had petitioned the high court seeking for the nullification of the current Board of Directors.
The factory is currently embroiled in allegations of corruption, corporate mismanagement and disputed board elections which prompted the disgruntlement amongst the shareholders who later petitioned the high court.
Presiding Judge, Hon. Justice Amos Kwizera of Bushenyi High Court has however dismissed the petition with costs and he ‘declared it incompetent and unfit’ to stand.
Consequently, an accompanying application (No. 14 of 2026) and a previous interim order stopping factory operations were thrown out after the Judge ruled that the shareholders should have taken their complaints to the Uganda Registration Services Bureau (URSB) instead of dragging the matter to court.
“Section 2;43 subsection 1 of the Companies Act gives the Registry of Companies powers to entertain disputes such as this one. It is very clear that this matter would have been referred to the Registrar rather than coming to courts to spend a lot of time. I would implore parties in the future to make use of the Registry and only come to the High Court to appeal,” the Judge noted.
With this position declared by the high court, the accused factory directors remain in control as shareholders threaten to take other measures and fronts.
Julius Mutahunga, one of the petitioners described the ruling as unfair to the farmers who wanted factory operations halted until leadership disputes were resolved.
“We cannot allow people who are manipulating the systems to remain at the helm of our factory. We are going to plan other avenues and handle this issue politically, or we are going to appeal,” Mutahunga warned.
“We went to the Registry of Companies and they referred us to court. Now we come to court and they refer us back to the Registry. The company didn’t pay us our money. They called us for an AGM, but before it started, they brought police to chase us away even though the judge wasn’t interested to listen to our side,” lamented Brian Tumwiine, a frustrated shareholder.
Ronald Monday, another shareholder, expressed confusion over why a board they accuse of corruption has been okayed to stay in power.
“As farmers, we don’t understand what they ruled because the former board was supposed to hand over office, but now the court has dismissed the case and allowed them to continue as the leaders in the factory are very corrupt,” Monday said.
John Baturiinwe, a tea farmer from Buhweju district, revealed that the mismanagement of the factory has left their families broke and their children desperate.
Baturiinwe asked Members of Parliament from the region to take the matter to the President saying, “the President is the one who gave us tea seedlings so he should tell us whether to uproot our tea gardens or stay in business.”
“ Factory leaders are ruining us and we are now poor and our children are idle and resorting to gambling. We ask the government to help,” Baturiinwe pleaded.
Despite the setback, the legal team representing the Igara Tea Factory shareholders insists that the war is far from over, Counsel Calvin Baryeruka acknowledged the court’s decision but emphasized that the core grievances of the 7,000 shareholders have not yet been heard or addressed by any judge.
“The petitioners’ main issues regarding unfair corporate governance were not listened to. Judges have discretion and he ruled that our procedure wasn’t the appropriate one. But that doesn’t mean the client cannot continue the case. Prudence requires that we first examine the ruling, understand it fully and choose our next course of action which includes the option to appeal,” Baryeruka said.
The fate of one of western Uganda’s biggest tea processing factories hangs in the balance, with farmers demanding either immediate legal appeal or a direct rescue package from the government. End.
